Kaizen is a Japanese management concept launched by Masaaki Imai, which proved to be the key to Japanese competitive success. The significance of this concept is: KAI = Change and ZEN = for better, and the translation is “continuous improvement”, that means small improvements to the ongoing efforts. Unlike the Western conception, implying total change, at large intervals of time, using large amounts of resources and a high cost level, Kaizen Costing seeks daily, gradual, slow, but continuous improvements, which take place at minimal cost. Kaizen strategy is that a single day should not pass without an improvement to intervene in the activity of each employee or each entity. The Japanese have shown that by applying this strategy, improvement is achieved with minimal expenditure. Specific characteristics that ensure successful approach of Kaizen activities are the following: disregards all ideas implemented so far in the organization of production; rejects the whole Continue reading
Operations Management Techniques
Background of Lean Manufacturing
Lean is a philosophy that spurred from the Toyota Production System (TPS). TPS was created by Toyota’s founder Sakichi Toyodo, Kiichiro Toyoda, and Taiichi Ohno. Much of TPS was also influenced by W. Edwards Deming’s statistic process control (SPC) and Henry Ford’s mass production lines. However, the Japanese were not impressed with Ford’s approach because it was filled with over-production, lots of inventory, and much waiting. Toyota identified these weaknesses in Ford’s production line and adapted the production line to create a more productive and reliable production line. TPS and lean also use just-in-time inventory where only small amounts of inventory were ordered and very little inventory was left waiting in the production line. This also was very different from Ford’s production line which usually bought high volumes of materials and had high inventory levels to lower costs. After TPS proved to be successful for Toyota, many companies adapted their Continue reading
Locational Decisions and Factors Governing Plant Locations
Plant location may be understood as the function of determining where the plant should be located for maximum operating economy and effectiveness. The selection of location for a plant is one of the problems, perhaps the most important, which is faced by an entrepreneur while launching a new enterprise. A selection on pure economic considerations will ensure an easy and regular supply of raw materials, labour force, efficient plant layout, proper utilization of production capacity and reduced cost of production. An ideal location may not, by itself, guarantee success; but it certainly contributes to the smooth and efficient working of an organization. A bad location, on the other hand, is a severe handicap for any enterprise and it finally bankrupts it. Locational decisions generally arise when: A new manufacturing (or servicing) unit is to be set up. Existing plant operations are difficult to expand due to poor selection of site Continue reading
Warehouse Management System
Warehouse management systems (WMS) is described as the advanced technology and operating processes which optimize all warehousing functionalities. These functions begin from receipts from suppliers and ending with shipments to the customers, also including all inventory movements as well as information flows in between. Warehouse management systems are mainly associated with large and complex distribution operations. However even smaller and middle size companies are identifying the importance of WMS in today’s scenario of integrated logistics, just-in-time delivery and e- commerce fulfillment. In practical situation, Warehouse Management System is used mainly in integrating computer hardware, software and peripheral equipment along with good operating practices so as to manage inventory, space, labour, and capital equipment in ware houses and distribution centres. Implementing of WMS serves the company by increasing its competitive advantage in matters of labour cost, improval of customer service, increasing inventory accuracy, and improving of flexibility and responsiveness. A WMS Continue reading
Assuring Quality in the Product Development Process
A venture isn’t fruitful in light of the fact that it has been finished on schedule and inside a spending plan. There is one other factor that is basic to progress: quality. Regardless of how rapidly and inexpensively a task is finished, partners won’t be upbeat if the nature of the item or administration doesn’t live up to their desires. Along these lines, one significant technique to follow and examine the nature of the task and ensure it meets the necessities of the clients is Quality affirmation. QA according to ISO 9000 is characterized as “a component of value the executives concentrated on giving certainty that quality prerequisites will be satisfied”. This deformity counteractive action in quality confirmation contrasts unpretentiously from imperfection recognition and dismissal in quality control and has been alluded to as a move left since it centers around quality prior all the while. The expressions “quality affirmation” Continue reading
Cellular Manufacturing – Meaning, Implementation and Benefits
A cellular manufacturing layout is in direct contradiction to the traditional production line. In the production line, numerous workers are needed to service a single production line running from receiving of raw material to shipping of finished product. A breakdown in staffing or machinery in any part of the line nearly always resulted in the entire process being idled until the specific difficulty in the line was repaired, or re-crewed. With cellular manufacturing, production is divided among groups, or cells, of workers and production machinery. Thus, the breakdown of one cell, due to equipment malfunction or staffing problems, does not radically affect the rest of the production process. Technology and cellular manufacturing have combined to streamline the production processes of numerous established and start-up manufacturing facilities worldwide. Lean systems, such as Kaizen, and Six Sigma, to name just two, though very often high in startup cost, provide both a short- Continue reading